16:05 7 March 2026
War in Iran testing Europe’s economy
According to Bloomberg, the next four weeks may determine whether Europe faces a serious economic crisis or only a temporary slowdown. US strikes on Iran, announced by President Donald Trump and expected to last about a month, have pushed energy prices higher and increased tension on global markets. Europe is particularly vulnerable because it depends on oil and gas from the region. A short term rise in energy prices would be manageable, but a prolonged increase could weaken economic growth and raise inflation. Oil prices rose from about USD 65 to nearly USD 90 per barrel, while gas prices in Europe jumped up to 54%. Higher energy costs could force governments to increase support spending and put pressure on budgets.
Economists warn that if disruptions persist, advanced economies could face stagflation, with rising prices and slowing growth.
(pb.pl)
